"These are the handiwork of those who are desperate to undermine the friendship between India and Afghanistan,'' he said in a statement.

The Indian Embassy in Kabul has been the target of two major attacks, one in July 2008 that killed more than 60 people and another last October that killed 17 people.

Al Jazeera's correspondent in Kabul, Hoda Abdel-Hamid, said that the attack was a message from the Taliban that it would continue its activities despite a major offensive against it in Helmand province.

"There is a concern that as the Nato push against the Taliban goes on, these types of attacks will increase as a result.

"The Taliban is showing that they too are very strong-willed and that they will attack anywhere and anytime they want.

"An attack like this one sends a message that no one is really safe, that even a city like Kabul, with heavy security, is not safe from the conflict anymore," she said.

"I strongly condemn the terrorist attack which took place this morning in Kabul," Rasmussen said in a statement.

"Once again, the enemies of Afghanistan have killed innocent civilians, Afghans and international workers alike."

After 12 days of fighting, Brigadier General Larry Nicholson, commander of US marines in southern Afghanistan, had welcomed Thursday's flag-hoisting in Marjahas "a new beginning" as Afghan government authority was restored.

Afghans "believe there is a fresh start for Marjah under the government of Afghanistan", he said as the country's flag was hoisted by the governor of Helmand province in front of several hundred residents.

Humanitarian groups have said residents are facing deteriorating conditions as food, medicine and other supplies run dangerously low and innumerable Taliban-planted bombs make movement in and out of Marjah perilous.